Wednesday, January 21, 2009

GTA Power of Sales Continue to Trend Up

In this entry, we'll revisit the situation in "power of sale" listings in the Greater Toronto Area (GTA). While "foreclosure" is a term commonly used in the U.S., in Canada, it is called "power of sale". A power of sale is the sale of a property by the lender, be it a bank, financial company or other individual.

In this post, we'll examine four charts:

  • GTA Power of Sale Listings by Month, 2007-2008
  • GTA Power of Sale Listings by Major Bank, 2007
  • GTA Power of Sale Listings by Major Bank, 2008
  • GTA Power of Sale Listings by Major Bank, 2007 vs. 2008


  • GTA Power of Sale Listings by Month, 2007-2008

    This chart shows the number of monthly new contracts to list properties on the MLS as power of sale in the GTA. The numbers are counted by looking at seller names whereby the name contains either "bank", "financial" or any of the major bank's short and long names. For example, if Royal Bank lists a property as a power of sale, the seller name is either listed as "Royal Bank" or RBC. This is not exact science since the seller name(s) for some non-power-of-sale listings contain the word "bank", but it's good enough to give us a sense of where things are going.
    We can see from the chart that, though the situation isn't alarming quite yet, the trend in power of sales listings is slowly trending up for the past couple of years. It will be interesting to see how this chart takes shape in the coming months.

    GTA Power of Sale Listings by Major Bank, 2007

    This chart shows the break down of power of sale listings by banks, for the period between January-December 2007. We can see that Royal Bank has the highest proportion of the power of sale listings - not surprising since it is the largest bank in Canada.


    GTA Power of Sale Listings by Major Bank, 2008

    This chart shows the break down of power of sale listings by banks, for the period between January-Decmeber 2008. What is interesting to note is that, in 2008, the proportion of power of sale listings for the other major banks increased, while Royal Bank's proportion decreased.


    GTA Power of Sale Listings by Major Bank, 2007 vs. 2008

    The following chart shows how much each major bank's share of the power of sale listings changed between 2007 and 2008. We can see that TD Bank and CIBC saw their share of power of sale listings increase the most.


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